Bullion Market Bears Are Roaring!

| July 21, 2015 | 0 Comments

goldBullion Market Bears Are Taking Over!

Something very interesting is happening in gold…

The yellow metal saw remarkably heavy selling over the past two trading sessions that took it to new multi-year lows near $1,100 an ounce.  Clearly, the downturn is not what gold bullion market bulls were hoping for this Summer.

And to make matters worse, an extremely important technical support level has now been broken.

Let me show you what I mean…

Bullion Market, A Chart Of Gold

As you can see, gold just fell firmly below $1,150 an ounce (red line), which were the swing lows set in late 2014 and early 2015.

With that level now in the rear view mirror, it’s highly likely gold experiences additional losses in coming weeks.

Keep in mind, I mentioned the likelihood of gold dropping below $1,150 was growing quite high not long ago.

How low could the yellow metal go from here?

Let’s look to another chart…

Bullion Market, A Long-Term Chart Of Gold

From this weekly chart, you can see gold’s next major areas of support are at $1,050 (top red line) and the psychologically important $1,000 zone (bottom red line).

Given the abruptness of the recent selloff, along with the fact there is little fundamental reason to own gold (at least in the short-term), I wouldn’t be surprised to see the metal at $1,000 by the end of this quarter.

How do you capitalize on additional downside in gold?

I supplied Commodity Trading Research readers with a free list of the best gold ETFs a while back. As you’ll see in that article, there are two leveraged inverse gold ETFs designed to rally as the price of gold falls.

Traded correctly, those products are capable of giving you outsized returns on another gold downturn.

But here’s the caveat…

All the inverse leveraged gold funds currently available are thinly traded.  As a result, they can be a bit on the tricky side to enter and exit efficiently.  With that in mind, these ETFs are best left to experienced traders!

Until Next Time,

Justin Bennett

***Editor’s Note*** Subscribers to the Options Profit Pipeline were instructed to buy SPDR Gold Trust $GLD puts this past Friday.  As you may know, put contracts rise in value as the price of the underlying asset falls.  Thanks to yesterday’s big drop in gold, our $GLD puts are already showing a 57% gain.

If you’d like to discover how to collect quick options profits on commodities and the companies producing them, click here.

BIO:  Justin Bennett is the head commodity research analyst at Commoditytradingresearch.com.  With over a decade of real world trading experience, he finds ways for you to consistently profit from movements in commodities and the companies producing them.  Sign up for our free reports and commodity newsletter at https://commoditytradingresearch.com/free-sign-up.

Tags: , , , ,

Category: Gold, Precious Metals

About the Author ()

Justin Bennett is the editor of Commodity ETF Alert, an investment advisory focused on profiting from the ebb and flow of important commodities via ETFs. The commodity veteran and options specialist is also a regular contributor to the Dynamic Wealth Report. Every week, Justin shares his thoughts with our readers on a variety of commodity-related topics. Justin is also a frequent contributor to Commodity Trading Research’s free daily e-letter. And he’s the editor of another highly successful and popular investment advisory, the Options Profit Pipeline.